# Sharpe Ratio

Raw returns can flatter to deceive—what matters is how efficiently those returns were earned. The **Sharpe Ratio** compresses this into one comparable number: *excess return per unit of volatility*.

Choose the sampling timeframe (e.g., Daily or Weekly), log or linear returns, a realistic risk-free rate, and optional annualization.

The result is a clean, time-consistent gauge of regime quality you can scan across assets and horizons.